U.S.-based Arcline Investment Management has announced it is buying Continental Aerospace Technologies from the Aviation Industry Corporation of China (AVIC) for total consideration of $535 million. The deal was announced June 8. Arcline has $30 billion in assets, and among its holdings is Signia Aerospace, which owns Hartzell Aviation, Hartzell Propeller, Cleveland Wheel & Brake Systems, and a half-dozen other aviation concerns. Arcline describes itself as a “growth-oriented private equity firm” that “seeks to build the next generation of Industrial Compounders”—”market-leading, non-disruptible industrial platforms designed to consistently grow earnings over decades.”
Continental was established in 1905 and built its first aircraft engine in 1929. Its engines are in tens of thousands of light aircraft. The company was bought by AVIC in 2011, which in turn bought German diesel aircraft engine manufacturer Thielert out of bankruptcy in 2013. The company went public on the Hong Kong Stock Exchange in 2018. “Continental is a highly respected platform with a long history of engineering leadership, trusted customer relationships, and mission-critical products that support the global general aviation fleet,” Arcline said in a news release. “The Company’s technical capabilities, large installed base, and reputation for reliability fit naturally alongside our aerospace and defense systems and subsystems strategy.”
These are the guys who now charge $1500 for a starter that cost $550 just a few years ago. They are destroying general aviation.
Be prepared for all things continental to increase in price by 50% overnight.
This is great news. Nice to have Continental back under US Ownership.
I see the Chinese trolls are out to down vote you. Yeah. I am glad the chinese no longer controls Continental.
I am not a big fan of PE either, but I will take that over Chinese ownership any day. It is comical to see all the folks where who think PE is worse than Chinese ownership. I suspect none of them have worked in China or with Chinese companies as I did prior to retirement.
From what I’ve experienced, both have about the same capacity for evil. It all depends which person is calling the shots. It could be OK but I doubt it.
I disagree, but even if your assertion is true, at least a PE is subject to US law and can be sued. Good luck suing a Chinese company.
This hyperbolic “same capacity for evil”
I don’t think PE will do any form of genocidal actions. Common man
That’s open for debate. I’ve learned that reasonable profit is not a bad thing, but that those who prioritize maximum profit above all else are dangerous and evil, and that PE firms are worse than most. Time will tell
Now we will be truly ripped off
This is the worst thing that could have happened to those of us with Continental engines. This company is doing its best to price aviation out of touch and ultimately out of business.
Ugh!
Really? The worst? A company bought by a chineese government controlled company? And an American company buys it is the worst possible situation? Hmmmm.
Apparently Bruce ignored all the other comments about prices going up
How is Continental owned by the chinese company good for American GA.
Basically all GA companies are doing the same things now.
A private equity firm? That can’t be a good thing! Look what happened to Foreflight.
Competition is coming
how? where? aircraft TC’s are tied to specific engines. Low production volumes mean high barrier to entry. we are handcuffed to these products
Oh sorry, I meant for Foreflight, not engines.
Prices to double in 5,4,3,2…..
This will not be good for anyone, except private equity. Where is the FTC?
I’m exhausted by Arcline ….. it buys up competitors until it monopolizes the market and then doubles or triples the prices. Look at Plane Power alternators, for example. Over $1,900. Similar with aircraft exhausts. Janitrol, C and D, Southwind heaters. Now they gobble up Continental, and no good will come of that to the consumers.
This is anti-competitive and I thought there were laws to prevent this?
Laws against big companies gobbling up their competition and then increasing prices? Those went away in the early 1980s, and we billionaires are finally reaping the benefits! “It’s a big club and you ain’t in it!” Sucker!
B&C is family owned and will never sell out to PE.
My error. It was C and D Heaters as I remember. My sincerest apologies.
I’ve bought from B and C and I recommend your starters to customers. Keep up the good work.
We do have laws, but the FTC has been disarmed and outgunned by lobbyists over the last decade. We are living in an age of monopolies and it’ll take 10-20 years to rebuild our anti-trust systems (if we even get the chance).
This is a very sad day for General Aviation. These Private Equity people only care about billionaires. They can’t make money out of GA so they will dump Continental, like Textron dumped Beechcraft, and so many other. Foreflight will be the next casualty of this infinite greed that just wants money and doesn’t care for the outcome.
I’m very sorry for this. Rotax is the only option available, because at least in Europe there are some people who care about aviation and not about inifinite obscene 80% eBITDA profits.
Oh, dear. If the usual outcome of private equity ownership is anything to go by, this is a very bad thing.
A P-Mag used to cost 2000 bucks, all in.
Now with Hartzell -> Arcline owning it, it went to more than 3000…
No surprise to be expexted for the Continetal owners.
Now immagine you all need some upgrades/changes to your engine when AVGAS 100LL will disappear.
This was called “corporate raiding” when I first encountered it in the early 1970s. Think Victor Posner or Mitt Romney. Their usual MO is to increase prices, liquidate non-essential assets and load the company with debt, which the raiders take. These things usually wind up bankrupt. Demographically, this is a foolish move, unless assets can be liquidated soon.
Don’t forget Carl Icahn, T. Boone Pickens, Kirk Kerkorian, or Michael Milken. All American “heroes”. :7O
On the plus side, it is good that it is going back to US hands. On the downside, those hands are yet another greedy anti-GA (as we know it) PE firm, so it will likely ultimately be a worse-off situation.
Yup, same people that charged me $595 for each oversize rod bolt. Holy mother of God, why not make the single bolt cost $9,000 or even $45,000? At this point, any level of absurdity is acceptable to them. There is no world where a 4 cylinder engine manufactured from common materials, with decades of mass production experience (that should drive costs down) should cost more than a modern car, $55K or $100K. Short of flying a collection of scrap parts, light general aviation is a done deal, in decline.
This does not look good for GA. Prices are already very high.
The FAA is a blessing and curse. The engine and component designs have been frozen for more than half a century and protected by the FAA. Piston GA has been dying by inches for decades. Parts in short supply, what is available is half junk, and the other half can not be delivered for 6-18 months. Doubling prices in this market will do nothing to advance the bottom line, or not for long. Experimental is the only hope and Arcline has hit them hard too. Lots of pressure for change, but FAA tangled with bigger problems to solve.
If Arcline just focused on organizational efficiency then this could be good, but not the track record. Just more opportunity to new businesses for alternators, starters, etc for experimental. Product liability is serious issue in getting automotive variants made.
Roasted golden goose anyone?
growth-oriented private equity firm” that “seeks to build the next generation of Industrial Compounders “— market-leading, non-disruptible industrial platforms designed to consistently grow earnings over decades.”
Translation: All prices will increase rapidly.
A 6- or 8-cylinder Rotax may very well be on the drawing board. Imagine that, and it would prefer unleaded car gas!
Google AI says: Arcline operates as an Industrial Compounder, meaning the firm establishes a collaborative, management-first approach. Instead of taking over daily piloting decisions, Arcline’s private equity partners control the capital allocation, major mergers and acquisitions (M&A), and pricing strategies. They delegate product engineering, FAA certifications, and direct manufacturing operations to the aerospace executives embedded within their respective subsidiaries.
I personally would like to see an STC that allows a Deltahawk engine conversion for my bird.
The product liability of certified aviation engines is staggering. I can’t even imagine the money that has been paid out in lawsuits even when the engine manufacturer had no part in what ever accident that was caused by somebody ether unskilled or not paying attention.
Until this gets under control and sanity returns to product liability for aviation, prices will keep going up.
We can complain all we want, but until we get real reform for this, we will continue to pay for it.
Glad someone is carrying the baton for these motors, would hate to see them disappear.
To all the China bashers in this thread: If AVIC would not have bought Continental out of their misery, their management would have bancrupted them a long time ago. AVIC invested a truckload of money every year to keep them afloat so you can keep flying your beloved aircraft! I know nothing about the new owner and wish them good luck – they are for sure in a far better position than AVIC was a couple of years ago!
Can’t see anything good coming from this. Prices will only go higher. Wonder why Textron didn’t buy them out.
First Brand Group bought over 100 automobile parts companies such as Champion, Raybestos, Autolite, Fram, Phillips Lighting, Trico, Reese Hitch, Draw-Tight, Carter Fuel Pumps… to name a few. They declared Chapter 11 in late 2025 amid fraud and corruption charges. 100+ major auto parts manufacturers that have supported vehicles from the 50’s to present. Most in business for 75-120 years. Gone in one PE bankruptcy. This includes dies, fixtures, and manufacturing fixtures that will never be duplicated for cars/trucks from the 50’s thru present as well. Not just gone temporarily, gone forever! That’s what happens when companies get bought by PE groups that only care about bottom line. That’s when we hear words like streamlining, market disrupters, stakeholders, growth oriented, and industrial compounders. Put all your eggs in one basket??? Ya better hope that basket does not get dropped supporting ever aging light airplanes. Now that the Chinese sold Continental, look out Cirrus! Including the well funded new delivery center in Nashville. Cirrus will be the next orphan airplane manufacturer. Nobody in the US wanted to buy them when the Chinese did. What makes you think they are a better investment today? Lastly, which economy is growing at more that 5% GDP. Sure is NOT ours. Be careful what you wish for. You just might get it.
This is not good. No company I interact with has come out of a PE acquisition without their products and customer service becoming remarkably worse. Out of the frying pan and into the fire.
private equity firm, just another name for corporate raiders. They name themselves that because the name corporate raiders is too revealing of their intentions.